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FERC will investigate Stagecoach Pipeline & Storage rates

The Federal Energy Regulatory Commission launched an investigation into Stagecoach Pipeline & Storage Co. LLC to determine if the natural gas company is over-recovering its cost of service and collecting unreasonable gas transportation rates.

FERC announced the investigation on March 20 under Section 5 of the Natural Gas Act. The commission ordered a hearing to determine a reasonable level of rates for Stagecoach, along with other issues. The commission asked the company to file a cost and revenue study for the most recent 12-month period. (FERC docket RP19-439)

The investigation follows a FERC staff review of rate information forms and other filings from pipeline companies. The review has produced other rate investigations, including one in February into Southwest Gas Storage Co., but has found no problems with the majority of pipeline rates. (FERC docket RP19-257)

In its March 20 announcement, the commission said that 38 other gas companies have complied with the commission's July 2018 final rule on rates, Order 849, which required pipelines to submit an informational filing, Form 501-G. FERC designed the form to help it assess the impact on pipeline rates caused by the cut in federal corporate income taxes and a shift in the commission's income tax allowance policy for pipelines organized as master limited partnerships. The companies released from further action include Florida Gas Transmission Co. LLC, Rockies Express Pipeline LLC, Sabal Trail Transmission LLC, Midcontinent Express Pipeline LLC, Colorado Interstate Gas Co. LLC and many others. (FERC dockets RP19-415, et al.)